Well $27.99 is for IMAX/Dolby/other premium format. Thats the hook I guess. People do shell out but only for the big blockbuster. The other movies are like the stuff you can watch using your Netflix account so a lot of non franchise movies have shifted direct to Netflix.

This is partly explained by Matt Damon here: https://www.youtube.com/watch?v=gF6K2IxC9O8

>I know you say it's the studios setting the price. Why do they seem indifferent to the impending bankruptcy of theaters?

They are pushing their streaming platforms and using the content as just a hook for other more lucrative sources of revenue(ie. Disney and theme parks). Do they really need the theaters now that people are hooked on streaming?